Media & entertainment set to breach ₹3 trillion by 2026
New media leads growth, as traditional sectors defy the odds to adapt to evolving dynamics
The Indian media and entertainment sector is poised to grow at a compound annual rate of 10% over the next two years to reach ₹3.08 trillion, according to the joint annual industry report by Ficci and consultancy EY. In 2023, it stood at ₹2.3 trillion.
Last year’s growth of ₹17,300 crore was however overshadowed by a robust ₹37,100 crore increase seen in 2022, it added. This slowdown was primarily led by the deceleration in traditional media advertising in the first half of the year. Barring TV, all media and entertainment segments grew in 2023, but the share of traditional media (TV, print, filmed entertainment, live events, out-of-home, music and radio) declined from 76% of the sector’s overall revenue in 2019 to just 57% in 2023. On the other hand, new media (digital, online gaming) witnessed the highest growth, contributing ₹12,200 crore to overall revenues, and increasing its share from 20% in 2019 to 38% in 2023.
While the M&E sector is projected to expand by 10.2% to ₹2.55 trillion by 2024, TV, digital media, animation,
VFX and filmed entertainment are estimated to reach ₹71,800 crore, ₹75,100 crore, ₹13,200 crore and ₹20,700 crore, respectively, said the report, which was released at the Ficci Frames event in Mumbai on Tuesday.
Television advertising witnessed a 6.5% decline, on the back of reduced spending by gaming and D2C (directto-consumer) brands, impacting revenues for premium properties. The Hindi-speaking market also exhibited subdued activity, resulting in a 3% overall decline in ad volumes. Despite this, subscription revenue grew after three years of decline, driven by price hikes, but the number of pay TV homes fell by 2 million. Linear TV viewership, or traditional broadcast TV viewing, increased by 2% compared to 2022, while the number of smart TVs connected to the internet showed significant rise, reaching 19-20 million per week, from 10 million in 2021, the report said. With the proliferation of smart TVs, several video streaming services are vying to appeal to family audiences, leveraging the popularity of connected TV sets in India. In fact, experts anticipate a further increase in connected TV penetration, driven by family shows, and the success of the Indian Premier League. The popularity of catch-up TV content or linear TV programmes that stream online, will also drive growth of connected TV sets, the report said. Meanwhile, defying the global trend, print media in India continued to flourish, and continued to be the preferred medium for affluent, non-metro audiences. Consequently, advertising revenues saw a 4% increase in 2023, fuelled by substantial growth in premium ad formats, while subscription revenues grew by 3% on the back of rising cover prices, the report said.
“While India’s M&E industry is estimated to grow at a 10% CAGR through the next few years led by digital, traditional mediums such as TV and print are also set to grow.
This underscores the enduring appeal of linear TV, particularly by established advertisers who value its unmatched brand-building capabilities at scale,” said Kevin
Vaz, Ficci media and entertainment committee member, and chief executive officer, broadcast entertainment, Viacom 18 Pvt. Ltd.
“It's essential to acknowledge the continued significance of traditional media, including television, print, and outdoor advertising in reaching diverse audience segments, especially across regional markets,” Vaz added.
Digital advertising grew 15% to reach ₹57,600 crore in 2023, or 51% of total advertising revenues, while digital subscription were up 9% to reach ₹7,800 crore. This growth was a far cry from the 27% expansion witnessed in 2022, with premium cricket properties, such as the IPL (on JioCinema), being available for free. According to the report, paid video subscriptions in India decreased by 2 million in 2023 to 97 million, spanning 43 million households. Executives said paid subscription growth across over-the-top (OTT) platforms plateaued since the surge in user base during the covidinduced lockdowns. While piracy still poses a significant threat to returns, the transition from individual OTT subscriptions to bundled offerings by a section of users has affected the average revenue per user. Penetration of OTTs among the urban elite reached a saturation point, with OTTs yet to develop a strategy to effectively engage the lower end of their target audience.
38% The contribution of new media to M&E sector in 2023
10.2% The growth M&E sector is expected to touch in 2024